The South Korean Digital Asset Exchange Association (DAXA) Opposes Government's Proposed Ownership Cap

BlockBeats News, January 13th, According to The Block, the South Korean Digital Asset Exchange Association (DAXA) released a statement strongly opposing the government's consideration of setting a cap on the ownership stake of major shareholders of digital asset exchanges. On Tuesday, DAXA warned in a statement that the proposed restriction measures could "seriously hinder" the development of the country's digital asset industry and market, and any attempt to artificially alter the ownership structure of private companies would undermine the foundation of the emerging industry. DAXA is a self-regulatory organization representing South Korea's five major cryptocurrency exchanges—Upbit, Bithumb, Korbit, Coinone, and Gopax.

Earlier this month, the Financial Services Commission of South Korea proposed limiting the ownership stake of major shareholders of cryptocurrency exchanges to between 15% and 20% to address potential governance risks arising from ownership concentration. The proposal has sparked controversy as it could apply to established companies with existing ownership structures.